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Countering Criticism. The department's statements seemed inspired partly by eagerness to counter sharpening criticism of sales of U.S. grain to the Soviets, and they did not wholly succeed. Department officials say the main impact of the Soviet purchases on U.S. prices will come in 1976, but Agriculture Secretary Earl Butz and department economists concede that additional Russian buying will ultimately raise consumer food prices by more than 1.5 percentage points...

Author: /time Magazine | Title: INFLATION: A Turn for the Worse | 9/1/1975 | See Source »

...wave of inflation"; he expects it to last for six to twelve months. The experts' main dispute seems to be over the reasons for that wave. Though all agree that crop failures played a role, Brookings Institution Economist Arthur Okun cites such "self-inflicted wounds" as the Soviet grain sales and the coming abrupt decontrol of oil prices at the end of this month. Monetarists argue that the Federal Reserve's moderately easy money policy earlier this year is partly to blame...

Author: /time Magazine | Title: INFLATION: A Turn for the Worse | 9/1/1975 | See Source »

...inspire an extra effort down on the Kochenevsky state farm, the Communist Party has created a new title, "Hero of Threshing," which will be awarded for outstanding performance. Riding atop their huge Niva combines, Soviet farmers last week were rushing to harvest the grain crop, and from the Ukraine to Siberia, extra trucks were being pressed into service to speed the wheat, corn, rye and barley to storage areas before fall rains cause spoilage. Despite the frantic efforts, the Soviet harvest is expected to fall at least 25 to 30 million tons short of this year's goal...

Author: /time Magazine | Title: SOVIET UNION: Behind the Current Russian Grain Woes | 9/1/1975 | See Source »

...shortfall, the second major Soviet grain crisis in the past four years, raises a basic question that has bedeviled the commissars since Lenin's days: Why is the Soviet Union unable to feed itself? U.S. Agriculture Secretary Earl Butz last week had a ready explanation: "There is no greater folly than to try to dictate agriculture policy from the political arena. Centralized decision making doesn't work-it never has and it never will...

Author: /time Magazine | Title: SOVIET UNION: Behind the Current Russian Grain Woes | 9/1/1975 | See Source »

...planners fouled up again this year. Under intense pressure from Party Chief Leonid Brezhnev to raise more grain for livestock, they set the total grain harvest goal at an overly optimistic level that would have nearly equaled the record 222 million tons achieved in 1973. Even if the present crop reaches only 180 million tons, it still would be the fourth largest Soviet harvest in history. But having allocated so much acreage for grain to be fed to cattle and poultry, Soviet planners now find that they did not have enough left over to comfortably feed the people...

Author: /time Magazine | Title: SOVIET UNION: Behind the Current Russian Grain Woes | 9/1/1975 | See Source »

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